Bow shareholders give tick to takeover by Arrow

Bow Energy
shareholders have waved through the $535 million takeover of the company by the Queensland coal seam gas venture owned by oil majors Royal Dutch Shell and PetroChina.

The deal, which is expected to be completed on January 11, will see the
Arrow Energy
venture swallow up Bow’s coal seam gas reserves, earmarking them for use in their planned liquefied natural gas project in Gladstone.

Arrow has flagged that the takeover may allow it to increase the planned size of the two LNG trains to be installed in Gladstone to as much as 4.6 million tonnes per year each, up from the currently planned 4 million tonnes per year.

Shareholders voting at the meeting in Brisbane and by proxy were 89.39 per cent in favour of the deal, with 95.25 per cent of votes cast for the resolution, Bow said on Wednesday.

The Federal Court of Australia is due to consider the scheme of arrangement tomorrow.

Under the deal, Bow shareholders will receive $1.52 per share in cash after Shell and PetroChina lifted their original offer of $1.48 per share.

Bow chairman Howard Stack told shareholders at the meeting that no other proposal was received in the four months since Arrow made its approach, despite “extensive steps" taken by the board to facilitate due diligence to any parties expressing interest in considering a competing offer.